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How to market and sell in buyer's market?


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Know more about Online Trend Analysis for the Real Estate Industry and Successful Marketing Strategies from Vinayak Katkar's presentation at the Digital Bites- a Digital Marketing Conference by Amura & Google @ Bangalore Google Office.

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How to market and sell in buyer's market?

  1. 1. How to market and sell in buyer's market? - Vinayak Katkar
  2. 2. About Amura USD 1.5 Billion Inventory Sold Sell.Do India’s most advanced Sales and Marketing platform for Real Estate 200+ Strong Marketing & technology team Rs. 90+ Cr in digital ad spends 150+ Real Estate clients 3.5 Million Leads acquired
  3. 3. Current Market Scenario
  4. 4. •  Real Estate economy - Struggling •  Nega5ve Sen5ment because of media coverage about the industry •  The unsold inventory numbers are increasing day by day and that is bringing down the confidence of buyer •  The unsold units in 8 large ci5es in the country an all-5me peak of 1171 million sq.E, up by 22 per cent from last year Source : ET
  5. 5. •  Bengaluru alone has 179.2 million sq.E. unsold inventory as of 31st Mar 2016 •  Current inventory overhang is about 4 years in all major ci5es. •  Ready possession flats are in demand than under construc5on because of unpredictability in construc5on comple5on. •  Buyers are wai5ng for markets to boRom out. •  Delays of 2 years have become common. Source : ET
  6. 6. "Smart people buy when market is perceived to be weak."
  7. 7. Buyers’ Pain Points
  8. 8. •  Buyers don’t know which are the best projects & best deals available in the market. •  They don’t know what will be right price to buy a property. •  Skep5cism about the credibility of developers, project comple5on, legal issues etc. •  Down payment issue. Buyers have loan eligibility but they don’t have margin money to pay. •  Higher Risk of money geXng stuck if project is delayed. •  Cost of owning real estate is higher than ren5ng. •  Investors aren’t geXng good returns as compared to other investment op5ons like stock/equity, MFs and bonds.
  9. 9. Developers’ Pain points
  10. 10. •  Finding prospects & geXng new leads •  Developers don’t know at what price the property will sell •  Expecta5on mismatch, demand-supply gap between customers and developers. •  Leads not geXng converted (Quality issue). •  Longer conversion cycles. Conversion 5me has increased from 1 month to 3 months. •  Cost of conversion is high & sales velocity is slow. •  Access to finance and capital to complete the projects. •  Too much dependence on brokers and channel partners
  12. 12. •  Primary market research and focused group discussions with exis5ng leads to understand their requirements. •  Catchment area analysis, primary economic drivers and employment in the project vicinity. •  Inventory Demand and supply analysis, absorp5on capacity of the micro- market •  Compe55ve analysis - product offerings & pricing, marke5ng strategy •  Buyer profile, Target audience and persona iden5fica5on •  Pricing strategy •  Giving right offers, payment plans and finance op5ons Market Research
  13. 13. •  Media strategy based on target audience. •  Media planning and buying. •  Communica5on strategy across all media including but not limited to Google, Social media, hoardings, radio and print campaigns. •  Differen5al communica5on to test the market response using Sell.Do plaeorm. •  Enquiry tracking, ROI tracking using •  Tracking cost per qualified lead, cost per site visit and cost per conversion. Go-to-Market Strategy
  14. 14. •  Enquiry flow management from pre-sales - site visits - to sales. •  On-site experience management and geXng customer feedback. •  Lead nurturing, lead scoring to focus more on qualified leads. •  Post sales management – execu5ng the agreements faster. •  Loan facilita5on, finance schemes to close the deals faster. •  Payment collec5on, post sales & CRM to manage customer queries. Sales - Last-mile push
  15. 15. q  Problem Statement To Sell 850 Homes in Virar (Mumbai Suburb) & Nasik (200 Kms from Mumbai) Concept : Life ka Chance Previous Offer : 20 : 80 Did not elicit any demand •  Get Premium homes at less than MHADA (Govt Housing Scheme) rates. •  Anil Kapoor as a brand ambassador. •  Get bookings via an auc5on(lucky draw) sale process with online form submissions with 21,000 Refundable Deposit. •  Tie up with HDFC Realty for managing the financial transac5ons and third party ins5tu5on to announce lucky winners. •  Tie up with Insurance Provider for construc5on delays and safeguard interest of buyers.
  16. 16. q  Results 1000+ EMDs collected 11,000+ Enquiries | Cost per Lead :Rs. 250 q  ExecuGon Success (DifferenGators) - Use of Automa5on Plaeorm to manage leads - Technology to tackle high lead volumes & manage sales performance IVR, Auto Dialer, Heirarchy Management, Lead Scoring - Robust payments Plaeorm to collect online payments
  17. 17. Royal Purandar
  18. 18. q  ObjecGve To transform their business from no-brand to a known brand
  19. 19. q  Execu5on •  Choosing the right media to adver5se. •  Communica5ng with customers in a more transparent way. •  Standardisa5on in process. •  Streamlined CRM process to handle. •  Financial process setup to streamline cash flows and collec5ons. q  Results •  Sale of 25-30 units per month. •  Increase in the conversion ra5o to 1-2% to 7% •  Total sales -300+ units •  Cost Per Closure < Rs.15,000 (Less than 1% of total considera5on value of plot)
  20. 20. What next that for Royal Purandar?? Taking Sales Velocity from 10 Cr to 60 Cr in 3 months - 6X
  21. 21. •  A Real estate flash sale to create a transparent & consumer-centric plaeorm to bring together developers and consumers. •  A transparent & hassle-free home-buying experience for the consumers & offer them best deals in the market. •  Technology plaeorm to remove middle men & pass the benefits directly to consumers CONCEPT
  22. 22. 10 Ci5es 15k Coupons Downloaded 40,000 Enquiries 250 Projects 60 Developers 4 Cr Indians Reached 2015 STATS
  23. 23. •  Bigger & BeRer : 600 Projects across 20 + Ci5es •  Officially Supported by Google. •  Partnerships with Banks for interest waivers across all projects. •  Timeline : 1st Oct to 16th Oct IRFS 2016
  24. 24. Thank You